Goldman Sachs said in a note on Monday that it initiated coverage on TAL Education Group (NYSE: XRS) with a Buy rating and a price target of $15.

Goldman Sachs noted, "TAL is well placed in the small-class segment and has a strong, underpenetrated learning center network. Reasons to buy: 1) Large untapped market opportunity. TAL's 14-city footprint is far below peers' 50-60, and we believe it has proven the scalability of its business model. 2) A focus on class-based tutoring (74% revenue contribution), a high-margin, easily affordable course format that caters to mass market demand. TAL is in a rapid expansion phase that we expect will result in sector-leading earnings growth and share price outperformance."